This matter came before the Utah State
Tax Commission pursuant to the Administrative Procedures Act and the rules of
the Utah State Tax Commission for informal proceedings.As provided for by Utah Code Ann. '63‑46b‑5, this decision is based upon
information contained in the Tax Commission's file.

FINDINGS

Petitioners ask the Commission to
waive penalty and interest on their XXXXX individual income tax.

Petitioners were new residents of Utah
during XXXXX and had never filed a Utah individual income tax return prior to
that year.Their CPA filed a request
for extension of Petitioners' XXXXX filing deadline.Petitioners then filed their return on XXXXX, establishing a tax
liability of $$$$$.The return claimed
credits of $$$$$ and enclosed payment of the balance of $$$$$.

Utah's Individual Income Tax Act
allows an extension of the filing deadline when the extension request is accompanied
by payment of either 90% of the tax due or an amount equal to the tax paid
during the previous year.Penalty was
assessed against the XXXXX because their extension request failed to meet
either of the foregoing standards.

In view of the fact that the XXXXX
were first time filers during the year in question, the Tax Commission finds
reasonable cause exists to waive the penalty associated with their XXXXX income
tax liability.Interest is not waived.It is so ordered.

DATED this 11 day of August, 1993.

BY ORDER OF THE
UTAH STATE TAX COMMISSION.

W. Val OvesonRoger O. Tew

ChairmanCommissioner

Joe B. PachecoAlice Shearer

CommissionerCommissioner

NOTICE: You
have twenty (20) days after the date of the final order to file a request for
reconsideration or thirty (30) days after the date of the final order to file
in District Court a petition for judicial review. Utah State Tax Commission
Administrative Rule R861‑5A‑1(p) and Utah Code Ann. '63‑46b-­14(3)(a).